US move on shrimp levy in August

The US International Trade Commission's (US ITC) move to initiate a 120-day 'changed circumstances' review of the 10.47 per cent anti-dumping duty levied on Indian shrimp means exporters will have to wait till August end to know if there will be relief in the form of revocation of the levy.

The US ITC has voted five-to-one on 'changed circumstances' because of the damage the industry suffered due to the December tsunami.

The US was the largest importer of Indian shrimps last year but the country has been pushed to the second place now due to the imposition of anti-dumping duty.

To beat this revenue obstacle, Indian shrimp firms have started exporting to European Union at lower prices, according to an exporter.

India exports an estimated Rs 4,550 crore worth of shrimps annually. Of this over 20 per cent is sent to the US.

The loss due to tsunami is estimated to about 15 to 20 per cent of the shrimp exports.

A Seafood Exporters Association of India (SEAI) statement said that US ITC has announced that it will initiate a formal investigation of the damage caused by the tsunami to India's shrimp industry.

The US department of commerce imposed a duty along with the US ITC's approval, on imported frozen shrimp from India earlier this year.

In January, the US ITC had upheld a 10.47 per cent dumping duty on Indian shrimp and shrimp products imports, which was effective from July 2004. Kenneth J Pierce of Willkie Farr & Gallagher, counsel of SEAI, said that terminating the dumping duties on India would require a majority of US ITC commissioners agreeing that revocation was not likely to lead to injury to the domestic shrimp industry.

A J Tharakan, president, SEAI, said, "We commend the US ITC for launching a formal investigation that could lead to the revocation of the dumping imposed on Indian shrimp exports to the US."

"The tsunami had damaged both shrimp aquaculture as well as shrimp caught wild, which account to 45 per cent of exports," said, Tharakan.

He said 88,000 fishing boats were destroyed and 10 to 15 per cent hatcheries extending over 14,000 acres of shrimp farms were severely damaged due to tsunami.

SEAI has submitted a report to the US ITC outlining the devastating impact of the tsunami on the shrimp industry in an effort to persuade the US government to revoke the anti-dumping duty on Indian shrimp imports on March 26.